Rate has been in place almost 18 to 24 months now. Almost everyone is on board and understands it. Gold bounced hard an explosion rocks and exxon refinery today. For workers were slightly hurt but no signs of foul play. Get ready for the third auction of coin. 25 grand for a friend. Two of the hottest Tech Startups around snapchat raising more money theyve been talking about raising funding revenue for a month. They are talking about 2. 8 billion. Heavy interest in this. Snapchat has a valuation of between 16 billion in 19 billion. How can a photo disappearing at have such a whopping valuation . What does it tell us about what snapchat actually is . You know it as the Smartphone App that lets you send photos to friends but then selfdestruct within 10 seconds. Founding in founded in 2011, at the start of this year, snapchat is pushing the on those snaps. That is a team between cnn, vice and comedy central. The content is packaged in a cooler, hipper way that lists for 24 hours. Facebook tried to buy snapchat for 3 billion in snapchat said no and raised 10 billion from investors all by itself. Now snapchat seeks a new round of funding and the company could be a valued as high as 19 billion says one person with knowledge of the matter, making it the Third Largest company backed by Venture Capital firms. So its not just naked selfies. David kirkpatrick joins me as well as bloomberg contributing editor and matthew wong. Let me start with you. I count at least 40 companies with a billiondollar valuation. I think one thing we tried last years we saw the number of companies able to raise their first funding and a billiondollar valuation more than double last year. For uber i think it shows Investor Confidence in its growth. If you imagine that across 100 Companies Investors are celebrating over. Some reports have been 200 billion active users. The product is beginning to trickle in with advertising, so investors are bearish. Are facebook and twitter the appropriate place for snapchat . Whatsapp and Facebook Messenger are the comps and there is a side of investors to find better returns and theres an availability issue. These companies are taking advantage. Snapchat did an extraordinary job and they are offering Something Different than facebook not based on to use the word targeting again, its just allowing you to be yourself. Not only are your they are basically saying they are not going to monetize personal data the way facebook does its business and just the sheer numbers are going to allow them to make money selling people media. When i brought up with our staff the idea that i wanted to talk about messaging with snapchat, there are people on our team at bloomberg west they dont think of it as messaging really, they think of it as its own kind of thing. When i look at whats going on with text messaging with all of the major carriers messaging is going in the tank. This this is a more sophisticated sort of messaging. There is a chinese role in all of these deals. I dont know if you ask that up, but snapchat has a significant backing from . 10. There was talk that they wanted to buy them. Meanwhile, alibaba is an investor in lyft, which is a competitor to uber and its same time, the two biggest taxi hailing companies in china are now merging. There are all kinds of amazing and that is uber plus biggest challenge in china and one reason they need to raise money in china because their Top Competitors a newly merged chinese combination of the two gigantic local firms competing with uber. May be a big Chinese Investment means something of a blessing for these companies to do business. Matthew wong let me ask you when we look at uber raising around that keeps getting bigger and bigger and never seems to close, is what we see from these guys trying to compete with or suck the oxygen dry so lyft cant do a similar big round . We saw this report that they were going to be raising an extra 250 million. They are late stage investors that may be investing in lyft and uber has taken a lot of these investors like blackrock and fidelity. On the other side, you also have softbank who is a great investor we have to leave it there. Thank you very much. Bloomberg west will be right back. Im cory johnson and this is bloomberg west. Greece will submit its request for a sixmonth loan extension tomorrow. Greece and the eu are trying to work out terms to extend a rescue plan set to expire at the end of the month. French automaker peugot has has posted its first they profit in three years. The factory cut investments and cut on new cars. A chinese carmaker is also helping them sell outside of the saturated european market. With tons is said to exit its 15 percent stake in jetblue after three years. The move should improve live tons upon balance sheet. Facebooks Ceo Mark Zuckerberg has revolutionized vacation on the web and is launching internet. Org, which is hoping to provide Free Internet service to disparate corners of the earth. Its been rolled out in several african countries along with india stop emily chang sat down with them to find out about his plans. Its one of the most populous nations in the world, starved of one of the worlds most precious resources. Exit the internet is how we track to the modern world, but unfortunately, worldwide only a little more than a third of people have access to the internet at all. In india, the numbers are even more dire. Of 1. 1 billion people, only 15 are online. So we find Mark Zuckerberg visiting students in a village on the outskirts of new delhi. The founder of facebook revolutionized how people communicate and now has a even more and vicious goal. We believe connecting everyone in the world is where the great challenges of our generation and that is where we are happy to play whatever small part we can. Next zuckerberg calls his plan internet. Org and he has been spreading the message from india to indonesia. Weve launched an effort called internet. Org will stop we are trying to bring affordable, basic services to everyone in the world. From the lips of the guy who created a split, it sounds eminently possible but the team at bits it has been far from easy. Its challenging because there are Market Dynamics you go to these villages and ask do you want the internet. They say why what i want the internet, but if you ask them if they want facebook, absolutely. They have been crisscrossing the globe ever since. How has having the internet changed peoples lives . Their mission is to offer a limited version of the internet for free. Here is how it works facebook custom builds a website for each partner country that leak that links to local weather news, jobs, Health Resources and finally to facebook all at zero cost to the user. The idea is users get hooked on the internet and by a data plan with the free access and creating new customers for carriers and new users for facebook. Is this a nonprofit . Is it charity . If we were primarily focused on profits, the most reasonable thing to do would be to focus on the first alien people using our products. You say connectivity is a human right and you want to do good things. If thats the case, why not give access to the complete internet . The model we consider this to be closest to is 911 in the u. S. Even if youre not paying for a phone plan, you can always dial 911. Why would a company want to give away a product . They think they can build the worlds most powerful device for accessing hearts and minds and sell that to somebody else will stop and facebook is just one of many internet giants in an epic global battle to win two win heart and mind share. Next whoever gets the biggest share of the people on the planet might be expected to dominate the future of media. 1, 2, 3. Not to be dominated, google has a fleet of High Altitude balloons already circling the planet bringing the internet down to earth. A new Company Called one web and spacexs elon musk announced a plan to launch low orbit satellites that would carry the internet everywhere. And facebook has a big shot of its own. Its sort of a new frontier where you can get higher data rates. In a Southern California lab still being built, he had a team of nasa engineers are developing lasers that will send the internet to earth in a beam of light. For all of the developed markets we are looking at trying to improve access we want to use Laser Communications everywhere. Next he plans to put lasers inside unmanned aerial vehicles, solar powered planes that continuously circle around the earth. The world record for solar powered flight is around two weeks. We need to figure out how to make these planes last for months or years at a time. The advantages they dont rely on cell towers or earthbased infrastructure. He says connectivity from the sky is three to five years out but expects to test the first facebook droned later this year. Once you have the power to get people connected, how du use the power . For us, its all about enabling people. Whatever that means in india and indonesia, the plan seems to be working. Carriers in both countries recently announced partnerships with internet. Org, giving millions of new people access to the internet and to facebook. How will you judge this has been a success . If we can make it to the Free Basic Services available in 100 or more countries, that will be a huge win for these people who now have access to new information on jobs and health care and education will stop you say you can help more than a billion people by 2020. Can you get there . We will see. Its the kind of grand plan you can only expect from Mark Zuckerberg. The real question is can he change the world not once, but twice . My partner emily chang in an exclusive conversation with Mark Zuckerberg. Bloomberg west will be right back. This is bloomberg west and im corrin im cory johnson are im cory johnson. Uber is rolling out an Insurance Plan to cover uber drivers when they are not ubering. Its a business from so far from actual data. What are the problems with uber drivers getting insurance . Many drivers now can tell their current insurance provider that they are driving for uber. Youre not allowed to drive as a taxi, so what this does is it provides coverage so there are a lot of drivers out there not telling their personal insurance carrier said the Lincoln Town Car i drive im using it for a Limousine Service . You make it you may get your insurance canceled on you. Thats a big problem. A lot of drivers live in fear of that happening. That is what these policies do. One of the things you guys are known for is sticking something in the car to see when it is in used and figuring out what your risk profile is and then selling insurance priced on the result. We have a committee this sticks under the . It plugs into the diagnostic board and sends back the number of miles you drive stop we are using the number of miles you drive and this is what makes it so easy to work with the uber policy. We know the numbers you are driving with for your personal miles in the number of miles you are driving with uber. How do you know the difference . Basically, we did a technical integration with their platform and the platforms work seamlessly so you can turn our policy and the uber policy on and off depending on where you are driving for uber and when you are driving personally. Do they go to another carrier . We dont take any of the behavior data and sell it anywhere, my question is in terms of the way your business works. You sell off the risk . We have an underwriter that provides the packing for our policies. Do they get how you are able to assess risk profiles . This profile of mileage being the dominant backer for insurance, there are a number of research being done and they understand that risk just like we do and thats how we are able to build a policy perfectly based on mileage. I presume uber drivers give it an for because they are on the road more. Does the behavior skewed differently when they are not driving for uber . The big difference for an uber driver is the time on the road. So theres a commercial policy for that an we are measuring the miles in between. Thank you very much will stop bloomberg west will be right back. Im cory johnson and this is bloomberg west. From google plus do no evil to facebooks plan to connect the planet, its not enough for companies to just do good. Startups start with a social Impact Mission statement before a business statement but is it just do goodiness . As a recovering new yorker, i was rolling my eyes and somewhat, but its so true that there are so Many Companies that start up with a Mission Statement, now with a business plan, but what theyre going to do to make the world a better place. It often starts with a group of people saying wouldnt it be cool if. ,. And wouldnt it be great if this positive change occurs . Wouldnt it be cool if my database worked better . Framing it as positive changes something out only occurring in the valley, but across the world. People are saying we can organize her selves in this thing called a company to create some kind of good in the world and Large Companies like facebook, google and others are leading the way. A lot of startup founders are getting in on the game. Silicon valley there was this tv show on hbo that poked some amazing fun at this. Then i see this clip the opening scene of the opening show take a look if you dont remember will stop when we were sitting down with barack obama, i said we are making the world a better place. And elegant hierarchy to make the world a better place to stop where do we draw the line . Whats a Serious Company thats focused on this . I think thats one of the reasons we need a brand like newco. If you dont find a way to celebrate these companies and connect them, theres no continuity where you can call people on their bs if they are not living up to what they are saying they are doing. Theres an opportunity to go beyond empty promises of Mission Statements and start to tell the stories of companies that are actually creating the change in the world and owning it. We see Venture Capital funds also talking about and investing along those lines, and i would have expected to develop and Pension Plans would say in the same way we suggested the vesting companies contribute to climate change, saying he need to invest in Companies Leading to social impact but it doesnt seem to be led by that. The social Impact Investing community has a nomenclature problem. They are afraid that if we call ourselves about social impact, we are going to get lapsed on the get lapped on the profit. Companies that do have a better bottom line. Over time and with the information economy we are getting to the part where we understand the total value of the company, not just its profit and that includes the good it does the world. Hes also doing things quietly, both Companies Giving a portion of their operating profit to charity and insisting there employees work and volunteer organizations will stop is that enough to mark i think thats part of it if you look at the organizations, they started with a Mission Statement about creating positive change will stop they wanted the end of software because they thought software was inefficient. Yelp had a Mission Statement about finding local information in realtime. Twitter is Building Social good and impact into its actual building and they talked about that at newco last year. The twitter for good is their approach to corporate philanthropy. They have changed their traditional approach to where they built the program and partner with midmarket in san francisco, a wellknown tenderloin depressed area in san francisco, partnering with that district in the actual headquarters of twitter and integrating employees into the program as opposed to just giving money they are integrating it into the workplace. And you put the insurer metro mall on the list . Absolutely. They wouldnt be cool if there was a fit bit for your car. By that standard, exxon mobil they are trying to lower the price of gas. I think celebrating it creates positive change overall and you can call me too optimistic i have no problem with that. Ive called you worse. We are friends in full disclosure but you just did a big investment and i read bloomberg invested as well. It is separate from this part of bloomberg, but im proud to have that family connection. Interesting stuff. Thanks for joining us. Coming up, we are talking about apple and their first new device since the ipad the apple watch. It coming soon, but how big a business is it going to be . Im cory johnson and this is bloomberg west. The apple watch is coming out in april the first completely new product from apple since the ipad, but will it be a breakthrough for the company . The world most valuable company. We are talking with hyper jan there Piper Jaffray analyst, gene munster. Its going to be relatively small versus the ipad. Its going to be half of where the ipad was in its first year. I think modest expectations a lot of consumers we have surveyed the true value of though watch they will be developing that overtime. Tim cook talked about the experience of using the apple watch. They are saying there are some meaning things, some people standing up because theyve all been sitting down for too long but it has been suggested the apps will make a difference. Ask exactly. Its similar to what happened when the iphone came out. It was marginally better. Developers held apps and change your phone into a a lot of different things. That is the expectation with the watch, that the developers will build the true value. Is this basically the same as your phone as developers optimize that, there can be new experiences with the watch we have not seen yet and its up to developers to drive demand for the watch. We have reported they have people talking to the mexican government, talking about what it might mean for health. Are there things that will need government approval around the world for this thing to do . It depends on what the asks are. It depends on what the apps are. Some of those are more infrastructure and healthcare related and it can be more health care and policy related. There are some places where they may need more government interaction and that opens a huge opportunity for the watch as a standard issue part of the health care system. When you calculate your watch numbers, what is the number and how do you come up with that number . Ask right now, its a lot of guesswork. We have done surveys over the past year in the u. S. , we have surveyed people and compare that to past surveys are on the ipad, we have been able to build numbers that suggests around 10 million and 15 million. Now we are getting numbers out of asia suggesting 20 million, so it kind of gets us in that range. The reality is is this is a difficult one to predict because its new category and there are a lot of unknowns about which apps are going to be out there. Thats our starting point and we will build from there. I would think the really hard part is the average selling price. The 24 karat gold watch what dvd topoftheline apple watch is going to go for at retail . What do you think the topoftheline apple watch is going to go for a retail . Summer between 1000 and 1200. The asp we are looking at is 500, so we expect them to have a big number but thats going to be one of the clear wildcards and for the most part, these are just guesses. Do you guess it might skew toward the hay, look, i just bought the topoftheline addition . I think you are going to get the early adopter serves the early adopters that get the features and what weve seen over time is we get into the mass market adoption and the asp tends to slide. Do you think they can customize it to where apple sees itself like burberry where we have some high and things that establish with the brand is for the world and many different skews down the line . A very different kind of company . Asked it is. Weve seen a slow transition to what you have described and just with the iphone going from one skewed too many theyve talked about outlines and having many different types of watches. This company is different and they recognize one size does not fit all. They want a platform to fit everyone but in terms of how people interact, they are giving more action today than they did five years ago full top we hear about them remodeling stores and putting in a special private room, does that tell you something about how they are establishing what the brand of apple is . I think they are continuing to push this highend, desirable brand. There was an expectation they were going to drop the price of the phone to be more successful on the mass market and emergingmarket. They have really emphasize the highend in their goal is to spend a lot of time and focus on the highend and still offer some products for the masses where if you cant hit that highend product, theres an offering that will be equally as profitable from apple for you to buy. That was gene munster, Senior Research analyst at hyper jaffrey. But bring you up to speed on world News Headlines tony getting aggressive in its profit forecast. Sony offering a profit and day 4. 2 billion profit by 2018, the highest 1998. Devices like image sensors movies and music will be the areas that lead sonys growth in the next three years. Sony is most competitive in these areas and we will see the potential of growth in these markets in the coming years. Sony is headed for six a sixth that loss in seven years stop russias largest Search Engines sees sales growth slowing. The reason is a sales slump and fluctuation in the market get a fluctuation in the ruble. Irans Supreme Leader is warning the nation will stop exporting oil and natural gas. Iran has the Worlds Largest gas deposit and fourthlargest oil reserves at the con but the country is suffering under sanctions related to its nuclear program. We know that samsung was the dominant phone company in china but they are getting hit hard by apple. We are looking at how samsung has fallen so far, so fast next. Im cory johnson and this is bloomberg west. Samsung path dominance in china is over. Xiaomi sales nearly tripled but samsung fell 22 . Second place, in their dreams samsung was in fifth place mind apple and lenovo. What happened . An amazing ball or does it reflect the fragility of market share dominance in china . It reflects an amazing fall. If you go back to 2012, every single quarter samsung was the leading supplier in china. Basically, it has fallen apart and what you see now is you got this upstart in xiaomi and Market Dynamics where some of the indigenous chinese carriers would sell bundles. They are selling direct and getting more sophisticated with their product design. Apple has moved in and moved in fast. When i look at the rise of xiaomi in particular, i look at a company that decides to have a full featured phone and also any notion of profit. Lenovo does the exact same thing. Xiaomi is fascinating because they load up historically, they load up toptier processors and load up with memory and its a beautiful Industrial Design if you have ever been over there. They really want to try to make money on their version of androids. Make money on accessories and make money on apps make money on other kinds of services xiaomi can offer. I will also say theres an authenticity about the brand and you just dont see that with samsung. Samsung is the big model of moving forward with lots of product but not a lot of authenticity and a voice people can latch onto. And yet samsung has talked about lowering the number of phones they offer and they still make a ton of different kinds of phones. But they were up to 100 different varieties of phones. We saw this in the pc world. Ireland were talking to michael bell and talking about how they have to get rid of a lot of skews because people want one iconic product. That is true to some degree but theres also this idea that the product you create has to be something people are absolutely craving. That is what samsung is having trouble tapping into. Samsung has to come up with features that kind of get in the way. That people want to strip away as opposed to xiaomi which has worked it toward their chinese audience and people are excited about it. I got the name drop. Should we be talking about market share or profit share . Apple, youve got all of these going down the margin scale apple isnt doing that. They are making the best products for the money over there. We should be talking about profit share and thats the kind of thing were spending more and more time advertising. The profit share battle is going to be really intense because there are are only so many of these highend customers. There are a lot of underserved consumers in china. To spend 600 on a phone is a lot of money. They are swapping out call flopping out qualcomm and putting in media tech because they want to address the needs of the next year and the tier below that. In your interview with gene munster, apple has not gone down market. Xiaomi is classic disruptor. It started lowend and is now eating that ground at the low end. Wideout we have you do the bwest byte, the one number that tells us a whole lot. How about 840 question mark 840 . Fax thats the price that sony has come out with for their new wearable glasses technology. I wear glasses sometimes. They dont cost 840. What do these glasses do . Its a 44 reduction over google glass. Its a very different approach but thats what they are trying to. Wearable glass, why not question mark you can always get the latest headlines on your phone, tablet and on bloomberg. Com. More bloomberg west tomorrow